CNH Industrial presented a new corporate strategy for the coming years. The manufacturer wants to take a leading role when it comes to innovation.
CNH Industrial, the parent company of tractor brands including Case IH, New Holland and Steyr, presented a new corporate strategy to investors and shareholders at a Capital Markets Day 2022 event in Miami, Florida. CNH Industrial calls its strategy “Breaking New Ground,” which the manufacturer says expresses its motivation to be at the forefront of innovation. The slogan would indicate the continuous search for better solutions and groundbreaking ideas.
The group’s CEO, Scott Wine, repeatedly cited the recent acquisition of Raven Industries and Monarch Tractor as examples. The Raven acquisition is said to be the largest acquisition in CNH Industrial’s history and involves a total of over $ 2.0 billion. Wine said CNH Industrial wants to achieve mainly organic growth in the coming years, but still pursue acquisition opportunities. The goal is to grow annual sales to the equivalent of $ 19.6 to $ 21,6 billion in 2024. For reference, annual sales in 2021 are converted to $ 17,5 billion. In the same period, pre-tax profit would increase from 9.9% to 12-13%.
According to the CEO, 76% of annual sales now come from the agricultural division, 16% from the construction division and 8% come from financial services.
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Derek Nielson, President of Agriculture at CNH Industrial, stated that 40 new products were launched last year, including a methane tractor and an updated tractor series. According to Nielson, 150 new launches in different product types are already planned for the period 2022 to 2024. In a slide he showed schematically in which segments are being renewed.
Notable in this is that, for example, the arrival of alternative fuel in a tractor segment larger than the current methane tractor is expected in early 2024. Furthermore, the slide showed some far-reaching automation systems, such as AutoCart for transfer wagons (end 2022) and Auto-Till for tillage (end 2022).
For this year innovations in the tractor segment from 140 to 180 hp and in the 180 to 250 hp segment are planned, among others.